Security

ATM thefts: a growing source of insurer loss

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February 5, 2021

Travelers insurance reported that claims for damages due to ATM thefts increased by 220% from 2019 to 2020. Tracey Santor, bond manager for Travelers said in areportby Claims Journal that claims for cash stolen from smashed ATMs are often accompanied by significant property damages. The ATMs themselves can cost $30,000 to $80,000, and could have approximately $40,000 in cash.

The Texas Bankers Association noted the increase in ATM crimes in Houston and Southeast Texas and appointed an ATM Crime Task Force to focus public attention on the problem. Last month member bank representatives reported even more numerous "smash and grab" attacks on ATMs and that thieves even used construction vehicles or heavy-duty trucks to rip apart ATM encasements to get access to cash.

The task force said in a November report that organized crime is the predominant source of ATM crimes in Texas, with about 95% of those groups based in the Houston area. FBI officials taking part in the task force meeting said that they have made more than 50 arrests and are actively tracking about 250 suspects believed to be involved in the crime rings. Law enforcement sources told the task force that Texas banks have lost about $13 million from ATM thefts.